British oil major BP has signed a ten-year LNG supply agreement with Pavilion Energy Trading & Supply, a unit of Singapore-based Pavilion Energy.
Under the sale and purchase agreement (SPA), BP’s wholly owned subsidiary BP Singapore will supply approximately 800,000 tonnes of LNG per year to Pavilion, effective from 2024.
The two firms are also planning to jointly develop and implement a greenhouse gas (GHG) quantification and reporting methodology.
Covering emissions from wellhead-to-discharge terminal, the new methodology will comply with relevant international standards.
Pavilion Energy Group CEO Frédéric Barnaud said: “This agreement further strengthens our relationship with bp as Pavilion Energy advances our strategies for a lower carbon future, beginning with GHG emissions quantification, reduction and offsets for Singapore.”
BP Singapore country president and Asia Pacific & Middle East trading & shipping CEO Eugene Leong said that BP aims to become a net zero company by 2050 or sooner.
“We are excited to enter into this agreement with Pavilion Energy not only to supply the Singapore market with LNG but also to co-develop a methodology to quantify the carbon intensity associated with the supply.
“We look forward to working with Pavilion Energy in implementing this innovative deal using bp’s LNG supply portfolio.”
This is the third long-term LNG supply agreement signed by Singapore state investor Temasek subsidiary Pavilion since November 2020.
The firm signed the other two deals with Chevron and Qatar Petroleum Trading.
Last month, BP said it plans to end natural gas flaring at its onshore oil and gas assets in the US by 2025.
It also plans to electrify more than 75% of its Permian operated wells by the end of 2021 and increase it to more than 95% by 2023.
